Mortgage Maven

The Option Arm Triplets: Dead Banks Walking

Bank United is not part of the trioka axis of sub-prime evil (Merrill Lynch, Bear Sterns and Lehman Brothers), but they continued to originate the Pay Option Arms well beyond the period that others stopped. They continued to offer the risky products to mortgage brokers as other lenders were imploding around them. No one could compete with their "flexible" underwriting guidelines. Someone benefitted. It sure wasn't their stockholders